Sep 21 2018

Rupee posted its 4th straight weekly decline against the US. Dollar

 Weekly Synopsis

 

Date:- 21st September 2018

Markets from 17th September 2018 to 21st September 2018:- 

Indian Rupee:-

  • Indian rupee posted a fourth straight weekly decline against the dollar while plunging to a record low earlier this week, as the government’s recent measures to arrest the currency’s slump failed to lift sentiment amid rising crude oil prices and weak local shares. For the week, the rupee fell 0.5%. Asia’s worst performing currency this year hit an all-time low of 72.99 on Sep. 18, shy of the key 73-to-dollar level. The rupee closed today at 72.1950 against the previous weekly close of 71.8450 on Sep 14th, 2018 to a greenback. It trades in a weekly range between 72.99 to 71.75 against the greenback.
  • India’s foreign exchange reserves rose to $400.49 billion as of Sept 14, compared with $399.28 billion a week earlier, the Reserve Bank of India said on Friday.
  • CNBC reported yesterday that India may begin payment to Iran in rupees for crude oil, while the ET Now reported on Wednesday that the Reserve Bank of India is looking at the possibility of allowing oil companies to buy dollars directly from the central bank.

Global Market:-

  • The U.S. dollar was higher against other currencies on Friday while the Japanese yen was lower as investors eyed trade war tensions. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, rose 0.22% to 94.08. The index fell more than 1% over the week, as investors moved away from the greenback in light of U.S.-China trade war worry.
  • The British pound skidded lower on Friday after European Union leaders warned Prime Minister Theresa May she must give ground on trade and the Irish border by November to clinch a Brexit agreement. After a recent run of gains, which had pushed the pound to its highest since mid-July, sterling succumbed to selling pressure as traders reassessed their optimism that Britain can secure itself a trade deal before it leaves the EU. The pound fell more than half a percent to as low as $1.3179, away from the two-month highs of $1.3295 hit on Thursday.
  • Euro zone private sector activity slowed in September, according to survey data released on Friday. The composite output index, which measures the combined output of both the manufacturing and service sectors fell to 54.2 from 54.5, against expectations for 54.4.
  • Sales of previously-owned U.S. homes unexpectedly registered no change in August, according to figures released by the National Association of Realtors on Thursday. Existing home sales remained unchanged in August from the previous month at an annualized pace of 5.34 million units. Economists had forecast a 0.3% increase to an annualized pace of 5.35 million.
  • The number of people who filed for unemployment assistance in the U.S. last week fell more than expected, remaining at the lowest levels in 49 years, official data showed on Thursday. The number of individuals filing for initial jobless benefits in the week ended Sept. 15 decreased by 3,000 to a seasonally adjusted 201,000 from the previous week’s total of 204,000, the U.S. Department of Labour said.
  • UK retail sales rose 0.3% in August, the Office for National Statistics said on Thursday. This was compared to a 0.9% increase in the previous month. Economists had forecast a 0.1% drop.
  • British consumer prices in August rose by 2.7% compared with a year earlier, the Office for National Statistics said on Wednesday. That was above expectations for an increase of 2.4% and compared to the 2.5% rise seen in July.
  • Euro zone annual inflation slowed slightly to 2.0 percent in August, the EU’s statistics agency said on Monday, confirming its earlier estimate. Eurostat also confirmed that inflation excluding volatile energy and unprocessed food prices, which the European Central Bank looks closely at in policy decisions, was 1.2 percent on the year. Month-on-month, headline inflation was 0.2 percent, Euro-stat said, while the figure excluding energy and food was 0.1 percent.
  • European markets are higher today with shares in London leading the region. The FTSE 100 is up 0.83% while France’s CAC 40 is up 0.63% and Germany’s DAX is up 0.48%.

Local Market:-

  • Indian shares erased most of the losses on Friday after panic selling in housing finance and property stocks saw key stock indexes plunge over 3 percent in intraday trade.
  • The broader NSE index closed 0.81 percent lower at 11,143.10, while the benchmark BSE index fell 0.75 percent to 36,841.60.
  • The NSE index posted a weekly fall of 3.2 percent, while the BSE index marked a 3.3 percent drop. Both indexes posted their biggest weekly fall since Aug. 11, 2017.
  • Among the worst hit stock was Dewan Housing Finance Corp Ltd (DHFL), erasing $1.12 billion from its market capitalisation. The stock dropped as much as 55 percent to its lowest since Jan. 23, 2017, before closing 42.6 percent lower. Private-sector lender Yes Bank Ltd remained under pressure, plunging as much as 31.7 percent after the central bank reduced CEO Rana Kapoor’s term, creating uncertainty about its outlook. The stock closed 29 percent lower.